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QS 13-7 Accounting for small stock dividend LO P2 The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $15 (prior to the dividend). points eBook Common stock-$5 par value, 395,000 shares authorized, 210,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,050,000 510,000 842.000 $ 2,401,000 Prepare the stockholders' equity section immediately after the stock dividend. Print JUN COMPANY Stockholders' Equity April 2 (after stock dividend) Common stock Paid in capital in excess of par value, common stock $ 197.500 510,000 707,500 Total paid-in capital Retained earnings Total stockholders' equity 843.000 1.550.500 $

Answer 1

Juo Company slock holders" Fqudy Apuil & Catter słouk dendend) $ 1155,000 Common stock Paid-incapidal 7R0.000 valuricommon sock in excens Todal paidsin-capilal Relained tannings Tolal słokboldens' equily. $1875,000 528.000 s aH03.000 Explanadions: Total słockholdeas' equeky .o a stock devid end. wi'll not stack diwdend only arningi chage because tranufers funds fuom meilained the paid in * Tolallamound of dividend (a10,000 X1ỏ/. X $15 çapila), acçounts 315,000 * Par value of dividenc ado,000 i 10/ X q5) * E aces in paid- in capilal I 105.000 %3D $ 1os 000) ({ 345.000 > fa10,000 Jouenal enday, Retainid, eaming Commonslock Paid- in capilal a par value,coman silouk Cr. Dr. $ 315,00O $ 105,000 Cr. in excess g ajo,000

Commen slock $ 1195, 000 ($ 1050,000 + 5,000 Paid- in capital inexecss of par value, conmun słock $ S10,000 + $ a10,000 $ 720,000 Total paid-in caprdal > 9 1875,000 Tolal » ŷ 1875,000 par Retained earnings - $ 528,000 ($$43,000 - f 3d5,000) Todal stockholdees equity $ a 403,000